TMI Blog2011 (11) TMI 428X X X X Extracts X X X X X X X X Extracts X X X X ..... portioned on the basis of turnovers. If the export turnover in the numerator is to be arrived at after excluding certain expenses, the same should also be excluded in computing the export turnover as a component of total turnover in the denominator. The reason being the total turnover includes export turnover. - Decided in favour of the assessee. - IT APPEAL NO. 153 OF 2011 - - - Dated:- 2-11-20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erator and the denominator of the formula, since otherwise it would produce anomalies or absurd results. Section 10-A is a beneficial section. It is intended to provide incentives to promote exports. The incentive is to exempt profits relatable to exports. In the case of combined business of an assessee, having export business and domestic business, the legislature intended to have a formula to as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the numerator and the denominator of the formula. In view of the commonality, the understanding should also be the same. In other words, if the export turnover in the numerator is to be arrived at after excluding certain expenses, the same should also be excluded in computing the export turnover as a component of total turnover in the denominator. The reason being the total turnover includes expo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the legislature is to be adopted while understanding the meaning of the total turnover, when the total turnover includes export turnover. If what is excluded in computing the export turnover is included while arriving at the total turnover, when the export turnover is a component of total turnover, such an interpretation would run counter to the legislative intent and impermissible. If that were t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
